Research On The Effectiveness Of Analysts’ Stock Rating Reports

Securities analysts play an important role in the secondary securities market.They are information intermediaries connecting listed companies and investors.They can use high-quality information acquisition channels to track and predict the future stock price trends of listed companies and publish professional reports.Compared with the mature capital markets abroad,Chinese capital market is still immature.There are too many retail investors and lack of relevant knowledge of financial investment.The majority of investors are in a weak position of information and tend to use analysts’ research reports as an important reference for investment.However,the reliability of analyst reports has also been questioned by some investors.Therefore,studying whether the ratings and forecasts of research reports issued by securities analysts are accurate and effective will help investors make rational choices when making investment decisions,and at the same time help analyze the effectiveness of Chinese capital market,provide a basis for the formulation of industry development policies.The paper adopts multiple regression analysis,using the research reports of all listed companies in the CSMAR database from January 2009 to December2019 and the relevant data of securities analysts as samples to study the validity of the forecasts of different rating research reports,as well as the research reports of different analysts.The impact of divergence in forecasts made by companies in the report on stock volatility.It is found that there is an “optimistic tendency” in the research reports of securities analysts in my country,and there is a negative relationship between the divergence of analysts’ forecasts and the rise and fall of stocks.On this basis,factors such as the nature of company property rights,audit quality,corporate governance level,and differences in market conditions are selected to further analyze the factors that affect the validity of analyst research reports and the degree of divergence in forecasting.Based on the analysis of factors such as governance level and market conditions,the validity of analysts’ forecasts varies under the influence of the above factors.In the mechanism analysis,based on the two mechanisms of information transmission and market attention,this paper discusses the mechanism role of information disclosure quality and investor attention in analyst research reports,and finds that both information disclosure quality and investor attention have a moderating effect.Finally,this paper suggests that regulators should continue to improve the information disclosure system in the market and reduce information asymmetry in the market;strengthen investor education and investment awareness,and investors should treat analysts’ research reports rationally and cautiously,and not blindly follow;For the analyst industry,it is necessary to improve the professional quality of analysts,build a reasonable team of analysts,strengthen professional ethics education,and improve the level of industry self-discipline.